Remote check deposit

Abstract

In accordance with the principles of the present invention, a system is provided for capturing a customer deposit at their place of business, converting the Magnetic Ink Character Recognition (MICR) data encoded documents into an image with an associated data file, and electronically transmit the data to a financial institution. The system allows the customer to scan each MICR encoded check that is to deposited with their financial institution, which captures financial institution routing information and customer account information. The associated image the physical check can be franked denoting the check has been electronically processed to avoid further processing. The resulting image and account data can then be processed by the financial institution. There are three options for encoding the amount: 1) the customer enters each amount after scanning the item prior to sending to the financial institution; 2) the financial institution enters the amount of each item after receiving the file from the customer; and 3) the amount field(s) are scanned and the amount is automatically entered. The system allows for both 1) online (Internet) capture of the MICR data and the associated image or 2) offline capture and the subsequent importing of the image and MICR data for transmission to the financial institution via the Internet. The financial institution can review the items captured online, and repair any item that is incorrect. The financial institution can use the system to print substitute checks that confirm to ANSI X9.90 for processing or deliver an electronic file in ANSI X9.37 format to any check processing system. The system includes secure transport over Internet connections for file transfer and dual control security to reduce fraudulent transactions from being initiated by the customer.

Description

FIELD OF THE INVENTION [0001] The present invention relates to remote check deposits. BACKGROUND OF THE INVENTION [0002] Every day, business customers deposit thousands of paper checks in financial institutions by physical deposits. Business accounts need to make deposits quickly and conveniently. Rushing to a branch is usually a hassle, even if only blocks away. In addition, because of the delay in depositing paper checks, business owners get feedback on bad checks too late to let them stop shipping an order before it reaches the offending customer. [0003] The Federal Reserve System, often referred to as the Federal Reserve or simply “the Fed”, is the central bank of the United States. It was created on 23 Dec. 1913 by Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve System is basically composed of a central, governmental agency—the Board of Governors—and twelve regional Federal Reserve Banks, located in ...

AI Technical Summary

Benefits of technology

[0011] A system in accordance with the principles of the present invention better facilitates check truncation at the place where checks are first presented. A system in accordance with the principles of the present invention fosters innovation in the check payment system without mandating physical presentation of checks at a financial institution. A system in accordance with the principles of the present invention improves the payment system overall.

[0012] In accordance with the principles of the present invention, a system is provided for capturing a customer deposit at their place of business, converting the Magnetic Ink Character Recognition (MICR) data encoded documents into an image with an associated data file, and electronically transmitting the data to a financial institution. The system allows the customer to scan each MICR encoded check that is to be deposited with their financial institution, which captures financial institution routing information and customer account information. The associated image the physical check is franked denoting the check has been electronically processed to avoid further processing. The resulting image and account data can then be processed by the financial institution. There are three options for encoding the amount: 1) the customer enters each amount after scanning the item prior to sending to the financial institution; 2) the financial institution enters the amount of each item after receiving the file from the customer; and 3) the amount field(s) are scanned and the amount is automatically entered. The system allows for both 1) online (web) capture of the MICR data and the associated image or 2) offline capture and the subsequent importing of the image and MICR data for transmission to the financial institution. The financial institution can review the items captured online and repair any item that is incorrect. The financial institution can use the system to print substitute checks that confirm to ANSI X9.90 for processing or deliver an electronic file in ANSI X9.37 format to any check processing system. The system includes secure transport over Internet connections for file transfer and dual control security to reduce fraudulent transactions from being initiated by the customer.

Problems solved by technology

Rushing to a branch is usually a hassle, even if only blocks away.

In addition, because of the delay in depositing paper checks, business owners get feedback on bad checks too late to let them stop shipping an order before it reaches the offending customer.

Images